The commitment was announced following a meeting between ADB President Masato Kanda and President Ferdinand R. Marcos Jr. at Malacañan Palace.
Kanda said the Philippines, which hosts the ADB headquarters, is facing growing pressure from rising global oil prices and supply disruptions linked to the regional conflict.
“The Philippines is ADB’s home, and we see the strain this crisis is placing on Filipino families, workers, and businesses,” the ADB president said in a statement.
“ADB will act swiftly to support the government to protect vulnerable communities, manage fiscal pressures, and strengthen the economy’s resilience.”
Economic strain
The Philippines has been heavily affected by the Middle East crisis because of its dependence on imported fuel, fertilizers, and other commodities. In response, the government declared a national energy emergency and rolled out the Unified Package for Livelihoods, Industry, Food, and Transport.
The package includes fuel subsidies, reduced excise taxes on selected oil products, and cash aid for transport workers, farmers, fisherfolk, and overseas Filipino workers returning from affected areas.
ADB said the proposed financing package would include policy-based and countercyclical lending, as well as possible trade finance support to help the government cushion the impact of oil supply shocks and rising prices.
The additional assistance is separate from around $2 billion in policy-based loans currently being prepared for the Philippines this year.
Long-term plans
Beyond emergency financing, ADB is also working with Philippine agencies on long-term resilience measures.
These include advisory support for the Department of Agriculture on fertilizer security, assistance to the Department of Social Welfare and Development on social protection programs, and investments in clean energy, energy efficiency, and mass transit systems.
ADB, founded in 1966, is a multilateral development bank owned by 69 members, including 50 from Asia and the Pacific. It supports sustainable and inclusive economic growth across the region. —Ed: Corrie S. Narisma
